Bank of Korea cuts growth outlook to 2.6%, keeps key rate on hold
- 5 years ago
한은, 올해 경제성장률 2.6%로 하향...기준금리 동결
The nation's central bank held its maiden monetary policy meeting of the year.
The BOK lowered its growth outlook for the year and, as widely expected, kept its key rate steady.
Kim Hyesung has the highlights from that session.
The Bank of Korea forecast the local economy to grow by 2-point-six percent in 2019, down one-tenth-of-a-percent from its earlier projection last October.
It also cut its inflation forecast from 1-point-seven percent to one-point four percent.
"We slightly lowered this year's growth forecast due to weakening global growth. Overall, it is similar to last year's growth rate.
We also downgraded our inflation forecast mainly on plummeting global oil prices and the government's social welfare pob licies."
This projection comes two days after the central bank said Korea's economy grew at a six-year low of 2-point-seven percent in 2018.
The bank expected 140-thousand new jobs to be added this year, down from last year's projection of 160-thousand.
BOK governor Lee Ju-yeol also expressed concerns about slowing global growth, including in the U.S. and China,... which could hurt Korea's exports.
Already, data by the Korea Customs Service shows that between January 1st and 20th this year, overseas shipments fell by 14 percent on-year... and exports to China dropped by double digits.
Sales of semiconductors, a key driver of growth in recent years, tumbled almost thirty percent on-year in January.
On slowing global and domestic growth,... the Bank of Korea's monetary policy board decided unanimously to keep its benchmark interest rate unchanged at 1-point-75 percent.
"Construction investment is expected to continue to slow down this year. And now, Korea's main driver of growth, exports is likely to slow down too. It remains unclear if government spending can offset those and cushion Korea's growth, like we saw in the fourth quarter last year."
At the same time, a less hawkish U.S. Federal reserve has eased pressure on the BOK to change its key rate in January.
The Bank of Korea said it will maintain its accommodative monetary policy stance for the year and make its rate decisions by closely examining domestic growth and external uncertainties like the global slowdown and the U.S.-China trade spat.
Kim Hyesung, Arirang News."
The nation's central bank held its maiden monetary policy meeting of the year.
The BOK lowered its growth outlook for the year and, as widely expected, kept its key rate steady.
Kim Hyesung has the highlights from that session.
The Bank of Korea forecast the local economy to grow by 2-point-six percent in 2019, down one-tenth-of-a-percent from its earlier projection last October.
It also cut its inflation forecast from 1-point-seven percent to one-point four percent.
"We slightly lowered this year's growth forecast due to weakening global growth. Overall, it is similar to last year's growth rate.
We also downgraded our inflation forecast mainly on plummeting global oil prices and the government's social welfare pob licies."
This projection comes two days after the central bank said Korea's economy grew at a six-year low of 2-point-seven percent in 2018.
The bank expected 140-thousand new jobs to be added this year, down from last year's projection of 160-thousand.
BOK governor Lee Ju-yeol also expressed concerns about slowing global growth, including in the U.S. and China,... which could hurt Korea's exports.
Already, data by the Korea Customs Service shows that between January 1st and 20th this year, overseas shipments fell by 14 percent on-year... and exports to China dropped by double digits.
Sales of semiconductors, a key driver of growth in recent years, tumbled almost thirty percent on-year in January.
On slowing global and domestic growth,... the Bank of Korea's monetary policy board decided unanimously to keep its benchmark interest rate unchanged at 1-point-75 percent.
"Construction investment is expected to continue to slow down this year. And now, Korea's main driver of growth, exports is likely to slow down too. It remains unclear if government spending can offset those and cushion Korea's growth, like we saw in the fourth quarter last year."
At the same time, a less hawkish U.S. Federal reserve has eased pressure on the BOK to change its key rate in January.
The Bank of Korea said it will maintain its accommodative monetary policy stance for the year and make its rate decisions by closely examining domestic growth and external uncertainties like the global slowdown and the U.S.-China trade spat.
Kim Hyesung, Arirang News."